9. Which of the following statements is true if the government places a price ceiling on gasoline...

Question:

9. Which of the following statements is true if the government places a price ceiling on gasoline at $1.50 per gallon and the equilibrium price is $1.00 per gallon?

a. There will be a shortage of gasoline.

b. There will be a surplus of gasoline.

c. A significant increase in the supply of gasoline could cause the price ceiling to become a binding constraint.

d. A significant increase in the demand for gasoline could cause the price ceiling to become a binding constraint.

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